invest in Newburgh, NY

345 Replies

I'm currently flipping in Beacon, NY but I'm looking at Newburgh. It still seems a little scary to me but I guess I'm willing to invest if there is change coming to the place. 

Anyone out there involved in NEwburgh. Would love to chat.

Did you ever do any work there?  I am curious about the results.  

I one 3 buildings and am purchasing more. IT is a tough space but a developer with some vision can have a significant and positive impact on the community as well as make a lot of money.  What are your questions?

Originally posted by @Michael Brown :

I one 3 buildings and am purchasing more. IT is a tough space but a developer with some vision can have a significant and positive impact on the community as well as make a lot of money.  What are your questions?

 Hi Michael.  

Can I PM you for more thoughts on Newburgh?  

I have a property on chamber Street I need to move as soon as possible please let me know if anyone is interested in the Newberg area

@Neil Browne @Michael Brown @David Lant

Could I ask you guys a few questions?

How is Newburgh doing? When I have the spare time I plan on spending a few days there soon. I've looked(and even bid) on Newburgh properties, never bought though.

I'm looking for a good town to do long term buy and hold. I thought poughkeepsie was going to be it but not to interested after dealing with the city bureaucrats.

How is the flipping business in Newburgh? I'm working on something in Westchester that's really promising but it's stretching me pretty thin to do the deal. Margins are great but need partners, hard money etc to do the deal.

I love the idea of buying house for cash and fix and flip. Would that model work in Newburgh?

Like I said long term I plan on owning in Newburgh. But short term I'm not so sure about what the market is like.

Yes, I'd like to hear about Newburgh too;  is it really the war zone everyone talks about?  Anyone think it will be coming along soon?

Opinions?  

@Alan Brown - I live in Newburgh. The news wouldn't be the news if the "bad news" were't highlighted first. I do think that Newburgh is coming along, as with any change, time is required. With anything we endeavor, do your homework/due diligence and make a decision you feel comfortable living with. Meanwhile, checkout these websites: www.newburghrestoration.com and www.newburghonhudson.com

All the best.

Hey guys,

I'd be open to finding an expert in the area and possibly do a tour of the area. I've driven through there and it is rough. But with some time and such it may be a good investment down the line. I'd be looking to do buy and holds there, I don't think it would be ideal for flipping just yet. 

Ceasar Rosas, Real Estate Agent in NY (#10301210194)
(646) 338-7267

city of Newburgh is very rough and schools aren't great but there some OK areas outside of city. I drove through looking at the buildings as they were so cheap I had to see for myself. It looked like a ghost town leftover with despair and desperate souls. I was approached on one corner while waiting for a light to change by a young kid selling some questionable goods.

As for the buildings they some were burned out others very run down. I wondered how a rehab would go there. I wouldn't be able to leave materials or tools or anything copper etc while. It may be a go for some brave investors out there but not me. Moving outward away from city the residential areas had some OK streets and the prices were cheap but overall I found other areas much more promising and am currently prepping a home for rent in the spackenkill poghkeepsie area.

Planning on moving on two Multy families next. 

I also plan on setting up a meet up in Poughkeepsie in the spring just have to find a place for us to gather. It could help fellow investors learn more about the towns up this way. Btw I live in Poughkeepsie.  Good luck to all. 

I am getting started in the Newburgh area and believe it's up-and-coming. The biggest problem is finding solid vendors to give honest pricing, quality work, and keeping a professional demeanor. As the city is strict, it's also difficult to find the capable vendors who are legally able to work as plumbers and electricians need to be licensed in the City of Newburgh. If anyone has any referrals PM me their contact info as I'm still putting together my team for all trades. 

Side Note- If you plan on investing in the Newburgh area stick close to areas that look like they're beginning to reach a point of stability. If everyone focused in one area and it grew from that area it could help the community, as well as, continuing to do what we all love. 

@Cameron McFadden genius idea!

I agree wholeheartedly with you. I was talking with a colleague @Alan Brown and I mentioned to him about my long term plans for buying in Newburgh. I'd love to buy now, however the plan is to build up enough funds that I can convince a few investors to get together and buy as much as we can on one block. Then BRRRR and do another block.

My plan is a little more involved and I would love to hear from like minded folks.

Only thing is I need build up my rehab funds again. I just spent all my meager profits from the last ten years.

So I'm flipping in Westchester to build up the fund.

Thoughts?

@John Hickey @Cameron McFadden Sounds good in theory, but what makes you guys see so much potnential in Newburgh? Besides maybe some C-D buy-hold rentals?

I think Newburgh may be further from a turn around than you think. 20+ years. And some cities never turn around... Unless Long island gets washed away in a hurricane and all those people have to re-locate or something lol

I think there are some better options out there, doesn't get much worse than Newburgh around here. Avg per capita income is $13,360. Known war-zone. Don't see the appeal besides cheap prices.

Curious what you guys see...

@John B.
Your pretty bullish on newburgh! I was expecting someone to say you'll
Get shot the first walk through.

20 years is a good time frame. I'm ok with that.

Three things I look for to predict gentrification.

Area is near the bottom of the real estate barrel for a sustained period. 50 years or more.

Buildings were built for wealthy people. Replacement cost tremendously exceeds current value(like Detroit)

People saying it will never happen.
That's about as good a sign as you can get.

I've heard that proximity to 7 figure property and transportation helps but how does that figure for Hudson or beacon? I live in chappaqua the express is 47 minutes to GCT. I can't see beacon as a commuter town. I'm sure someone does it but not enough to push prices up just for a MN stop.

If you asked anyone I grew up with 20 years ago if any part of north Brooklyn would be livable they would laugh at the idea. If you said it would be a sought after place they would think your nuts.

I'm no crystal ball guy.

I haven't bought there yet. Been keeping an eye on it for 8 /9 years. Ive done about ten days in Newburgh in that time.

Ten years ago I was buying in bed stuy.

Now my buddy Timmy bought a 10,000sf warehouse on Clifton and Bedford in 1997 for less than 100k. He had a crystal ball.

Things that have kept me from buying

Corruption,unstable zoning regulations.

But once they get it together I Plan on buying 20-30 houses there.

I saw a package a while back for 3.2 i think it was like 80 units(could be wrong)I was thinking about it but it's a bit too much work for me right now (young kids full time job)

Also I would have to sell a place that has a lot of upside in it with low risk to buy in newburgh(risky)

Newburghs day will come.

So here's a bit of the plan. I raise say 2m. I get a few guys with a bit more cash. We approach anyone of a 10000 real estate guys in manhattan......

like my old partner who has a group of about 1,000,000sf of commercial space in lower Manhattan.

Small place Newburgh. Even with 500-750 vacant buildings if the city gets it together that would disappear. And reappear as double stroller laden sidewalks with tiny little shops selling all kinds of crud for dogs.

@John Hickey Interesting take for sure. thanks for sharing..... Beacon and Hudson have definitely come up, I've been interested in Hudson recently. I agree they aren't commuter towns IMO but anything past Croton to me seems too far Lol. But that's just me. 

Peekskill had potential but with Indian Point shutting down thats bad for employment and taxes. 

What are your thoughts on Kingston? Pretty far up, but has potential to be a decent town. 

I think everyone hopes Newburgh will come around, I'm skeptical. But certainly plenty of money flowing from NYC up the line, that's a fact. Where it will land is the big question.

I've just heard horror stories from people that have had multiple rentals in Newburgh, but I hope it comes around long term, I'd love to get involved!

I think you guys are right on track, @John B. and @John Hickey :  if you build it, they will come.  I love the idea of a bunch of investors getting together and doing it block by block.  Again, the city would have to get it together to help.  Thanks for the great snapshots, @Tymalaya Thomas .  

It will take people w cojones, like @Cameron McFadden to get after it and start the ball rolling.  

Someone just told me Newburgh had the highest rates of murder per capita in the country.  I wonder if that's true...?

Still, it's really not far from NYC at all, and right on the river...  

My sister never fails to remind me that on the upper west side, where she lives, she was offered decent apartments for $10k apiece as recently as the 90's!!  We all lament our lack of money and creativity at the time!! 

Good morning
I am an Agent in the Hudson valley and live in Newburgh. I am interested in connecting with those who are looking to invest in Newburgh. Change soon gonna come. Let's talk!

no offense, and I was born and raised in Newburgh, it's a war zone and will always be a war zone.  Change has been on everyone's tongue for the 40 years I've been alive and it's only gotten worse. 

Most other areas around Newburgh got their acts together but Newburgh perpetually stays violent.  

I agree with everyone on there's no guarantee that Newburgh will ever come back. I'm placing my bets there with my partner/business partner as we split our time between Newburgh and Brooklyn. My reasoning behind it is everywhere else is way too overpriced. Hudson is much further away from the city, but people are still flocking there. I believe Newburgh will be really showing change in the next 6 years if not less.

One major change about to come to the area is the relocation of a lot of people from Brooklyn. The L train which connects Brooklyn to Manhattan will be discontinued for construction purposes. Thus, causing an influx of movers/millennial's that can work remotely due to technology to places that are historic, yet 'hip' so to speak such as that of authentic Newburgh.

Historically, Newburgh has the second largest historic district in New York. It's where George Washington was posted during the war. It was also one of the first places to be lit up by electricity. Sadly, one of the many major demises was when Newburgh mall was built. It took all the major businesses away from the mom and pop shops within the city. 

There's so much going for Newburgh, that once you see past the crumbling buildings and really see what Newburgh is and once was it makes it so exciting knowing that we'll be a part of it's return. We just need to stay strong and see it through. Why go where it's already come-up? As they always say in bigger pockets podcast, you gotta take the risk somewhere or somehow.

If anyone would like to discuss further please PM me. Thanks!

Good Luck Everyone!

@Alan Brown I'm not sure about this year but certainly in the recent past Newburgh is in the top ten mureder rates for cites in the country and I def remember hearing it's was NYS Mureder capital in the last five.  

I grew up in boros, lived in far rockaway and have had countless conversiaons with people that are kicking themselves for not buying vacant lots for nothing, 2-3 house for 10k.  My cousin owns 30 units in rockaway.  He laughs all the way to the bank.  

It might not be in the next five to ten years but gentrification is inevitable in a place with buildings built like that.  20 years, 30 years.... as long as you can get it cash flowing while you wait.  

I missed one thing I look for tho and one thing that's kept me from buying in Newburgh.  I need to see some signs of the bottom. And my guys have to be safe enough to work.  We don't mind working in a rough areas, but I don't buy when I can't stand outside all day....last time I was in Newburgh that wasn't the case.  That's what I'm waiting for.  

Maybe a few of us should get together and talk up what the tipping point is.  

The hasidics in Brooklyn march block by block and building by building to join up crown heights with bed stuy and boro park.  I certainly didn't come up with the idea of putting a few investors together to get a foothold.  

@Frank Gucciardo where do you buy?

The demise of Newburgh did not begin with the Newburgh Mall.  It began in the 60s with urban renewal and the demise of manufacturing. Once the mills shut down the city became a dumping ground for ex cons from NYC and other cities in Orange County. Urban renewal promised a new start for the city but demolished 90% of the historic waterfront and value of Newburgh.  What was supposed to built in its place never happened. It wasn't until the 90s that the waterfront was redeveloped, however, when you go to the waterfront you stay at the waterfront so you don't get killed. Not very helpful to the city and it's been there for 20+ years.  

My area is Ulster County and some small areas in central Orange.  Stewart and the warehouses are a good economic base for rentals. 

@John Hickey , your missive was rambling but utterly fascinating. Thanks for sharing your ideas about Newburgh. BTW, heads up, we orthodox Jews consider the term "hasidics" to be derogatory. It is mainly used by people who don't want "us" in "their" neighborhoood. Hasidic Jews or Hassidim are both perfectly acceptable.

Hi all,

I'm an active investor in Newburgh and own a few multi there. Newburgh is not a market for flipping however for investor seeking to hold it has some benefits.

Feel free to PM with any question.

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